Israeli Foreign Minister Tzipi Livni and hawkish ex-premier Benjamin Netanyahu are locked in a battle for power after a tight election that could send peace talks into limbo. Livni's Kadima party won 28 seats in the 120-member Knesset, just one ahead of Netanyahu's Likud party, leaving the country facing perhaps weeks of political uncertainty. An overall lurch to the right makes it more likely Netanyahu will return to the nation's most powerful post, but Livni immediately started coalition talks, meeting with Avigdor Lieberman of the ultra-nationalist Yisrael Beitenu—who observers say has emerged as king-maker.

A Turkish state prosecutor has launched an investigation into allegations that Israel's offensive in Gaza amounted to genocide and crimes against humanity, based on research of the Islamic-oriented human rights organization Mazlum-Der. The complaint filed by Mazlum-Der names 19 people including Prime Minister Ehud Olmert, President Shimon Peres, Foreign Minister Tzipi Livni and Defense Minister Ehud Barak. "We submitted the complaint against those who we could prove were in some way responsible for giving orders for the attack on Gaza," said Mazlum-Der attorney Meryem Sari.

From The Telegraph, Jan. 28:

Benjamin Netanyahu, the favourite to win next month's Israeli general election, yesterday predicted al-Qaeda would blow up the purported burial place of Jesus Christ if the country relinquished control of Jerusalem.

The Israeli human rights group Yesh Din announced Jan. 29 it is launching a campaign to help Palestinians sue the state of Israel for its use of their privately owned lands for Jewish settlement in the West Bank. The campaign follows the publication in the newspaper Ha'aretz of classified government data regarding the extent of construction in officially recognized settlements that is illegal under Israel's own laws. Violations include private and public building carried out without appropriate permits or outside of approved plans, as well as the construction of whole neighborhoods on private Palestinian lands.

Israel's Prime Minister Ehud Olmert has assembled a team to defend his government against charges of war crimes in its recent Gaza Strip offensive. Justice Minister Daniel Friedman is to lead an inter-ministerial team to prepare legal defenses for Israeli officials and military personnel. Israeli Attorney General Menachem Mazuz warned earlier this week that Israel may face a wave of international lawsuits over its 22-day offensive.

In his first call to a foreign leader, President Barack Obama spoke to Palestinian Authority President Mahmoud Abbas on the phone Jan. 21, saying he wants to work "as partners to establish a durable peace in the region," according to an Abbas aid. He shortly followed the call up with one to and Israeli Prime Minister Ehud Olmert. Israel is currently withdrawing the last of its troops from the Gaza Strip, but prevented Abbas' administration from transferring $80 million to Gaza to pay Palestinian Authority workers there. Israel told the UN and other aid agencies they must apply for project-by-project Israeli approval and provide guarantees none of the work will benefit Hamas. (Bloomberg, Reuters, Jan. 21)

One of Barack Obama's first moves as the 44th president of the United States is expected to be the nomination of Sen. George Mitchell (D-ME) as his Middle East envoy. Mitchell headed the committee appointed by President Bill Clinton to probe the roots of the 2000 al-Aqsa Intifada. A former House majority leader, he also served as President Clinton's special envoy to Northern Ireland.

The fragile ceasefire in the Gaza Strip entered its third day Jan. 20, with residents struggling to absorb the devastation caused by Israel's deadly 22-day assault on the territory. UN chief Ban Ki-moon is to make his first visit to witness first hand the extent of the destruction, which has left some 4,100 homes totally destroyed and 17,000 others damaged. Medics in Gaza are now saying more than 1,300 Palestinians, nearly a third of them children, were killed in the Israeli offensive.